The new asset management arm of SiS International Holdings launched a real-estate private equity fund yesterday that will give accredited investors access to undervalued properties in Singapore, Hong Kong and Japan.

SiS Asset Management (SiSAM), which was set up here last year, told a briefing that its SiS Real Estate Opportunity Fund will target high-end residential and commercial properties and hotels.

"(Accredited investors) can't buy a floor of office units or a mall on their own... We have formed a structure for investors to co-invest together," said SiSAM chief executive Ong Kang Lin.

An accredited investor is defined as one with net personal assets of over $2 million, or an annual income of not less than $300,000 in the past 12 months.

SiSAM said it is eyeing some luxury homes in the prime Districts of 9, 10 and 11 here, and it would "swoop in" on choice distressed assets when the time is right. The properties acquired would be leased or sold when the market conditions are favourable.

Mr Ong said funds will also be allocated to upgrade commercial properties that it acquires, if required.

Unlike traditional private equity funds, which usually require significant initial commitment upwards of $1 million, the minimum subscription amount for the SiS Real Estate Opportunity Fund is $200,000. The target size of the closed-end fund is $50 million, with an investment term of five years, plus two additional one-year extensions.